Is "I am still taking fun of it" correct usage?

Is

I am still taking fun of it

correct usage? I want to mean that it is still funny to me.

I am still taking fun of it is fairly non-sensical. Try I still find it funny or it's still funny to me.

I am still taking fun of it

is incorrect usage, as the phrase take fun of does not exist in standard English. Perhaps, you want to say

I am still making fun of it

Make fun of is a standard phrase which means:

tease, laugh at, or joke about (someone) in a mocking or unkind way. ^NOAD

However, this may not be quite you mean. In that case, you could simply say:

I am still finding it funny / I still find it funny

I should add that I am still finding it funny is a construction a native speaker would likely never or rarely use. Thus, I still find it funny is the way to go in this case.